The type of trust that is designed to prevent the beneficiary's creditors from getting the trust assets is a:
A)Charitable trust.
B)Totten trust.
C)Spendthrift trust.
D)Termination trust.

Question

Quizplus · Accepted Answer

A spendthrift trust is designed to protect the beneficiary from their creditors by placing restrictions on when and how the trust assets can be distributed. This ensures that the beneficiary cannot use the trust assets to pay off their debts, making it an effective asset protection tool. Charitable trusts are designed to benefit a charitable cause, Totten trusts are a type of bank account trust, and termination trusts are created with a specific end date in mind.

The Type of Trust That Is Designed to Prevent the Beneficiary's